Final Terms for Constant Leverage Certificates (BULL OLJA X10 VON10)

Transkript

1 Investment Banking / 7 December 2018 Final Terms for Constant Leverage Certificates (BULL OLJA X10 VON10) based on the 10X Long Index linked to Brent Crude Oil Future V5 ISIN DE000VA9F7G8 (the "Securities") Issuer: Guarantor: Offeror: Securities identification numbers: Total offer volume: Vontobel Financial Products GmbH, Frankfurt am Main, Germany Vontobel Holding AG, Zurich, Switzerland Bank Vontobel Europe AG, Munich, Germany ISIN: DE000VA9F7G8 / WKN: VA9F7G / Valor: / NGM Symbol: BULL OLJA X10 VON10 250,000 Securities These Final Terms were prepared for the purposes of Article 5 (4) of Directive 2003/71/EC and should be read in conjunction with the Base Prospectus (including any supplements) dated 27 August It should be noted that only the Base Prospectus dated 27 August 2018 (including the information incorporated in it by reference) and these Final Terms together contain all the information about the Issuer, the Guarantor and the Securities offered. The Base Prospectus, any supplements and these Final Terms are published on the Issuer's website (certificates.vontobel.com) whereby the Final Terms are accessible by entry of the respective ISIN on the website certificates.vontobel.com and the Base Prospectus and any supplements thereto are directly accessible on the website certificates.vontobel.com under the section 'Legal Documents'. A summary for the specific issue is appended to these Final Terms. The Base Prospectus dated 27 August 2018 is valid up to 29 August After that date, the Public Offer will be continued on the basis of one or more successor base prospectuses (each a "Successor Base Prospectus"), if the respective Successor Base Prospectus provides for an extension of the offer of the Securities. In this context, these Final Terms should be read together with the respective most recent Successor Base Prospectus and all references in these Final Terms to the Base Prospectus should be understood as references to the respective most recent Successor Base Prospectus. Each Successor Base Prospectus will be published at the latest on the last day of validity of the respective currently valid Base Prospectus on the website certificates.vontobel.com under the section 'Legal Documents'. These Final Terms were prepared for the purposes of the Public Offer of the Securities. The issue of the Securities is a new issue.

2 2/7 Investment Banking / Final Terms dated 7 December 2018 / DE000VA9F7G8 Vontobel I. TERMS AND CONDITIONS The Securities are subject to the Terms and Conditions in the Base Prospectus dated 27 August The following specifications complete the applicable Terms and Conditions as per the particular features of the Securities offered under these Final Terms: Section 2 Definitions Cash Amount Cash Amount Rounding Currency Conversion The Cash Amount shall correspond to the Reference Price of the Underlying on the Valuation Date multiplied by the Ratio. The figures resulting from the calculation of the Cash Amount shall be commercially rounded to two (2) decimal places. If the Settlement Currency is different from the Currency of the Underlying, all payable amounts under the Securities shall be converted into the Settlement Currency at the Conversion Rate. "Conversion Rate" shall mean the relevant conversion rate as determined by Bloomberg Index Services Limited for the Valuation Date and as published on the website around 2:00 pm (local time Frankfurt am Main) (BFIX). If such a Conversion Rate is not determined or published or if the method of calculating the Conversion Rate changes materially or the time of the regular publication is changed by more than 30 minutes, the Calculation Agent shall specify the Conversion Rate applicable at the time of determination of the Reference Price on the Valuation Date in its reasonable discretion. Exercise Agent shall mean Bank Vontobel AG for the attention of Corporate Actions Gotthardstrasse Zurich Switzerland Exercise Cut-Off Date Telephone: +41 (0) Fax: +41 (0) shall mean each tenth (10th) Business Day before an Exercise Date. Exercise Dates shall mean the last Business Day in each calender month, commencing as of 31 December Exercise Time Guarantor Governing Law is 18:00 a.m. (local time Stockholm) Vontobel Holding AG, Zurich (the Swiss Guarantor) The Securities shall be governed by German Law. Issue Date shall be 12 December Issue Size Maturity Date Minimum Exercise Number (up to) 250,000 Securities shall be the ninth (9th) Business Day following the Valuation Date. 1 Security Ratio The Ratio shall be expressed as a number and shall amount to Reference Price Registry Type Settlement Currency Termination Cut-Off Date The Reference Price shall be the relevant price of the Underlying for the purpose of determining and calculating the Cash Amount and shall correspond to the index closing value determined and published by the Index Calculation Agent on the Valuation Date. Swedish Registered Securities of the Securities shall mean SEK. shall be ten (10) Business Days prior to the relevant Termination Date. Termination Date shall mean the last Business Day in each calender month, commencing as of 31 December Underlying Valuation Date: 10X Long Index linked to Brent Crude Oil Future V5 ISIN Underlying: Currency of the Underlying: shall mean CH USD

3 3/7 Investment Banking / Final Terms dated 7 December 2018 / DE000VA9F7G8 Vontobel (a) (b) in case of valid exercise by the Security Holder pursuant to section 4 of the Terms and Conditions the relevant Exercise Date; in case of Ordinary Termination by the Issuer pursuant to section 5 of the Terms and Conditions the Ordinary Termination Date. If the Valuation Date is not an Index Day, the Valuation Date shall be postponed to the next following Index Day. II. INDEX DESCRIPTION Index Name: Reference Instrument Index Calculation Agent: Information Page: 10X Long Index linked to Brent Crude Oil Future V5 (the "Factor Index") Brent Crude Oil Future Bank Vontobel AG, Gotthardstrasse 43, 8002 Zürich, Switzerland The composition and calculation of the Factor Index specified above is described in the following. The Index Calculation Agent will make an index guide available on the Information Page for each Factor Index, containing this description together with the stipulations in the Final Terms. The index guide constitutes the basis for calculating and publishing the Factor Index. A) INDEX DESCRIPTION The Factor Index reflects price movements in the Reference Instrument with a leverage factor of 10. An increase in the price of the Reference Instrument since the most recent calculation of an Index Closing Value results in a positive change in the Factor Index as compared to the previous price of the Factor Index and vice versa. The Factor Index therefore replicates a "long" strategy. The Factor Index consists of a leverage component and a financing component. Leverage component The leverage component tracks an investment in the Reference Instrument, whereby movements in the price of the Reference Instrument are multiplied by the Leverage (Factor). This leverage effect occurs with either positive or negative movements in the price of the Reference Instrument, having a disproportionate effect on the value of the Factor Index. For example (leaving aside the financing component): 1. An increase in the price of the Reference Instrument (as compared to the most recent Valuation Price of the Reference Instrument) by 2% results in an increase in the in the Factor Index by 10 x 2%; 2. A decrease in the price of the Reference Instrument (as compared to the most recent Valuation Price of the Reference Instrument) by 2% results in a decrease in the Factor Index by 10 x 2%; Financing component The financing component reflects the income and costs that would be incurred in the event of a corresponding investment in the Reference Instrument. Since an investment in futures does not involve the purchase of the reference asset underlying the future but simply consists of entering into a corresponding position in a futures contract, no expenditure is incurred for the acquisition of the reference asset underlying the future. Instead, the only requirement is to make a margin payment based on the position entered into in accordance with the rules and regulations of the Reference Exchange. The financing costs for the margin payment are reflected in the financing component. The financing component also reflects the income that would be earned from a risk-free investment in line with the strategy of the leverage component and at the relevant Interest Rate. Additionally, a fee charged by the Index Calculation Agent for the calculation and administration of the Factor Index is added (Index Fee). Financing component If the costs of the margin payment and the Index Fee exceed the interest income based on the applicable Interest Rate on a particular day, the value of the Factor Index on that day is reduced.

4 4/7 Investment Banking / Final Terms dated 7 December 2018 / DE000VA9F7G8 Vontobel B) INDEX DEFINITIONS The definitions below shall apply for the purposes of this index description: "Adjustment Date" means the first Index Calculation Day of each calendar month. "Extraordinary Adjustment Event" means any of the following events as they relate to the Reference Instrument: (a) (b) changes in the conditions on which the Reference Instrument is based or the principal features of the contract on the Reference Exchange; other changes relating to the Reference Instrument by or on the Reference Exchange. "Valuation Price" of the Current Reference Instrument for an Index Calculation Day means subject to an Extraordinary Adjustment of the index calculation pursuant to section D) the settlement price of the Current Reference Instrument determined and published on the Reference Exchange. For the sake of clarity: following a Rollover (see below), the Valuation Price of the new Current Reference Instrument is applicable for the continuing calculation of the Factor Index in accordance with section C). If an Index Calculation Day is not a Trading Day, the Valuation Price for the immediately preceding Index Calculation Day shall continue to apply (adjusted where necessary, in the reasonable discretion of the Index Calculation Agent, if and to the extent that a Rollover has taken place since the preceding Index Calculation Day). If no Valuation Price for the Current Reference Instrument is determined or published on a Trading Day, the Index Calculation Agent shall determine the Valuation Price of the Current Reference Instrument for that day on the basis of the most recent prices set for the Current Reference Instrument in its due discretion. "Financing Spread" represents (in the form of a premium over the relevant Interest Rate) the costs of the margin payment which may be incurred for investments in the Reference Instrument in line with the strategy replicated by the Factor Index. The Financing Spread on the Index Start Date corresponds to the Initial Financing Spread. The Index Calculation Agent then adjusts the "Current Financing Spread" in its due discretion on each Adjustment Date to reflect current market conditions and publishes it in accordance with section E) of this index description. The adjusted Financing Spread shall apply immediately as from the relevant Adjustment Date. "Initial Financing Spread" means 2.50% per annum. "Trading Day" means every day on which the Current Reference Instrument is traded on the Reference Exchange. "Leverage" means 10. It describes the impact that a change in the price of the Current Reference Instrument has on the relevant Factor Index. "Index Calculation Agent" means Bank Vontobel AG, Gotthardstrasse 43, 8002 Zurich, Switzerland. "Index Calculation Day" means every day from Monday to Friday. "Index Fee" means 1.00% per annum. The Index Fee is charged each calendar day, beginning as of the Index Start Date. It is calculated on the basis of a 360-day year and the most recently calculated Index Closing Value. "Index Closing Value" is calculated for each Index Calculation Day by the Index Calculation Agent in accordance with section C) 1) of this index description on the basis of the Valuation Price of the Current Reference Instrument for this Index Calculation Day and published in accordance with section E) of this index description. "Index Start Date" means 16 May "Index Start Value" means 1,000 index points and represents the Index Closing Value on Index Calculation Day T=0 for the purposes of calculating the index in accordance with C). "Index Currency" means USD. "Information Page" means "Information Page" means January, February, March, April, May, June, July, August, September, October, November,. "Reference Instrument Price" means at any time during the trading period on the Reference Exchange the price of the Current Reference Instrument on the Reference Exchange, as determined by the Index Calculation Agent. "Reference Exchange" means IntercontinentalExchange (ICE). "Reference Instrument" means Brent Crude Oil Future. Currency: USD ISIN: Bloomberg Symbol: XC CO1 Comdty "Current Reference Instrument" means the Initial Reference Instrument from the Index Start Date until the first Rollover Date. Once the Index Closing Value on the first Rollover Date has been calculated and determined, this Reference

5 5/7 Investment Banking / Final Terms dated 7 December 2018 / DE000VA9F7G8 Vontobel Instrument loses its validity and is replaced by the Reference Instrument contract for the Contract Months specified above next falling due on the Reference Exchange. On each subsequent Rollover Date, following the calculation and determination of the Index Closing Value, the Current Reference Instrument is replaced in turn by the Reference Instrument contract falling due on the Reference Exchange in the next following Contract Month (respectively a "Rollover"). Each Rollover is published by the Index Calculation Agent in accordance with section E). "Initial Reference Instrument" means Brent Crude Oil Future Feb 2019 (COG9 Comdty) "Rollover Date" is determined in each case by the Index Calculation Agent in its reasonable discretion and falls within a period of ten Trading Days prior to the last trading day of the Current Reference Instrument on the Reference Exchange. In the event that the first notice day of the Current Reference Instrument falls prior to its last trading day on the Reference Exchange, the period for the Rollover Date shall begin ten Trading Days before the first notice day and shall end with the last Trading Day of the Current Reference Instrument. "Barrier" means 8%. It indicates the maximum permitted negative change in price of the Reference Instrument compared with its most recent Valuation Price before an Intraday Index Adjustment takes place. "Interest Rate" means USD LIBOR O/N (overnight). LIBOR stands for London InterBank Offered Rate. LIBOR is an average interest rate based on information submitted by the contributing banks. The panel banks indicate the interest rates at which they are able to refinance their own interbank activities in the relevant currency for the relevant term on an unsecured basis. To calculate the reference interest rate, the highest and lowest quartiles of these interest rates are eliminated, and the remaining interest rates are averaged. LIBOR is calculated for 7 different terms and 5 different currencies. The LIBOR interest rates (ICE Libor) are administered by ICE Benchmark Administration Limited (IBA) and determined each business day at 11 a.m. (London time). LIBOR O/N (overnight) stands for terms of 1 day. If the Interest Rate is neither set nor published on an Index Calculation Day, the Interest Rate applied on the immediately preceding Index Calculation Day is used to calculate the Index in accordance with section C). If the Interest Rate has neither been set nor published for ten consecutive Index Calculation Days, the Index Calculation Agent has the right and obligation to stipulate in its reasonable discretion an alternative relevant Interest Rate which has functions comparable to the previous Interest Rate. C) INDEX CALCULATION The Factor Index shall be calculated for the first time on the Index Start Date. The initial level of the Index on the Index Start Date corresponds to the Index Start Value. The respective current index level is calculated by the Index Calculation Agent on a continuous basis during the trading period of the Reference Instrument on the Reference Exchange on each Index Calculation Day, rounded to two decimal places and published in accordance with section E). One index point corresponds to one unit of the Index Currency. C) 1) Index Formula The Factor Index is calculated for each time t during an Index Calculation Day T in accordance with the following formula: where: R IDX t = IDX T 1 {1 + L ( t R T 1 1) } leveragecomponent ( IR T 1 FS T IG ) d 360} } financingcomponent T: current Index Calculation Day IDX t : Index Value at time t on Index Calculation Day T IDX T-1-1: Index Closing Value on Index Calculation Day T-1 which immediately precedes the current Index Calculation Day L: Leverage (Factor): 10 R t : Reference Instrument Price at time t RT T-1-1: Valuation Price on Index Calculation Day T-1 IR T-1-1: Interest Rate on Index Calculation Day T-1 FST: Financing Spread on Index Calculation Day T IG: Index Fee d: Number of calendar days between Index Calculation Days T-1 and T

6 6/7 Investment Banking / Final Terms dated 7 December 2018 / DE000VA9F7G8 Vontobel Intraday Index Adjustment If at time s on Index Calculation Day T the Reference Instrument Pricefalls below the most recent Valuation Price of the Current Reference Instrument by more than 8% (Barrier), an "Intraday Index Adjustment" takes place, simulating a new day: s = T, i.e. IDX T-1 (new) = IDX s R T-1 (new) = R T-1 (old) x 0.92 d = 0 A new Valuation Price valid after time s (R T-1 (new)) is calculated by multiplying the previous Valuation Price (R T-1 (old)) by The financing component remains unchanged. No additional costs are incurred for the newly simulated day. D) EXTRAORDINARY ADJUSTMENT OF THE INDEX CALCULATION In the event of an Extraordinary Adjustment Event occurring in relation to the Reference Instrument or the Current Reference Instrument, respectively, the Index Calculation Agent will adjust the index calculation on the Reference Date (as defined below). In doing so, the Index Calculation Agent will to the extent - endeavour to calculate the leverage component as if no Extraordinary Adjustment Event had occurred. The Index Calculation Agent will generally adjust the index calculation by correcting in its due discretion the relevant Valuation Price of the Current Reference Instrument on Index Calculation Day T-1 on the Reference Date, in order to factor into the index calculation the adjustments relating to the (Current) Reference Instrument made on the Reference Exchange. The Index Calculation Agent may adjust the index calculation in some other manner if it deems this necessary in its due discretion in order to reflect differences between this Factor Index and the Reference Instrument traded on the Reference Exchange. Adjustments of this nature may relate in particular to the replacement of the Reference Instrument by another comparable Reference Instrument on another Reference Exchange and, where relevant, to the designation of a different Reference Exchange and a different Reference Instrument Price. The list of Extraordinary Adjustment Events cited in section B) is not exhaustive. The deciding factor is whether the Reference Exchange deems an adjustment of the contract size, the Reference Instrument or the designation of the relevant exchange determining the price of the reference item of the Reference Instrument to be necessary. In cases of doubt about the application of the adjustment rules, the Index Calculation Agent shall decide such questions in its reasonable discretion. The rules and regulations of the Reference Exchange shall apply in addition to the provisions set out above. "Reference Date" within the meaning of this index description means the first Index Calculation Day on which the relevant Reference Instruments are traded on the Reference Exchange after taking the adjustment into account. Adjustments relating to the Factor Index and all other measures taken under this section will be published by the Index Calculation Agent in accordance with section E). E) NOTICES All notices pertaining to the Factor Index will be published on the Information Page. Such notices shall be deemed to have been given on the date on which they are first published. Notices are made for informational purposes only and do not represent a precondition for legal effectiveness. Information regarding Benchmarks pursuant to Article 29 Para. 2 of the Benchmark Regulation The amount of the claim under the Securities will be calculated under consideration of 10X Long Index linked to Brent Crude Oil Future V5 (for the purpose of these Final Terms the "Benchmark"). The Benchmark is provided by Bank Vontobel AG (the "Administrator"). As at the date of these Final Terms, the Administrator is not included in the register of administrators and benchmarks established and maintained by the European Securities and Markets Authority ("ESMA") pursuant to Article 36 of the Regulation (EU) 2016/1011 (the "Benchmark Regulation"). III. FURTHER INFORMATION ON THE OFFER OF THE SECURITIES 1. Stock exchange listing and trading arrangements Stock exchange listing: Market Maker: Application is made for the Securities to be included in the regulated unofficial market of Nordic Growth Market (Nordic MTF Sweden). Expected first trading date: 12 December 2018 Bank Vontobel Europe AG, Alter Hof 5, Munich, Germany

7 7/7 Investment Banking / Final Terms dated 7 December 2018 / DE000VA9F7G8 Vontobel 2. Terms of the offer The Issue Price and the Value Date of the Securities and the start as well as the expected end of the Public Offer are specified below. Issue Price: SEK Value Date: 12 December 2018 Public Offer: in Sweden: 7 December 2018 The Public Offer will end with the term of the Securities or in case that a base prospectus which follows the Base Prospectus has not been published on the website certificates.vontobel.com under the section 'Legal Documents' until the last date of the validity of the Base Prospectus with expiration of the validity of the Base Prospectus pursuant to section 9 of the German Securities Prospectus Act (Wertpapierprospektgesetz - WpPG) 3. Costs and charges There are no additional charges or commissions levied for the purchaser. 4. Publication of information after completion of the issue With the exception of the notices specified in the Terms and Conditions, the Issuer does not intend to publish any information after the issue has been completed.

8 1/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel APPENDIX - ISSUE-SPECIFIC SUMMARY Summaries are made up of disclosure requirements known as "Elements". These Elements are numbered in Sections A E (A.1 E.7). This summary contains all the Elements required to be included in a summary for this type of securities and Issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted in the summary because of the type of securities and Issuer, it is possible that no relevant information can be given regarding the Element. In this case a short description of the Element is included in the summary with the mention of "not applicable". Section A Introduction and warnings A.1 Warnings The summary should be read as introduction to the base prospectus dated 27 August 2018 as supplemented from time to time (the "Base Prospectus"). Any decision to invest in the securities (the "Securities") should be based on a consideration of the Base Prospectus as a whole, including the information incorporated by reference together with any supplements and the Final Terms published in connection with the issue of the Securities. In the event that claims relating to the information contained in the Base Prospectus are brought before a court, the plaintiff investor might, under the national legislation of the states of the European Economic Area, have to bear the costs of translating the Base Prospectus before the legal proceedings are initiated. Vontobel Financial Products GmbH (the "Issuer") and Bank Vontobel Europe AG (the "Offeror") and Vontobel Holding AG (the "Swiss Guarantor") have assumed responsibility for this summary including any translation thereof. However, Vontobel Holding AG has assumed responsibility only with respect to the information relating to itself and to the guarantee under Swiss law. Those persons which have assumed responsibility for this summary including any translation thereof, or persons responsible for the issue, can be held liable, but only in the event that the summary is misleading, inaccurate or inconsistent when read together with the other parts of the Base Prospectus, or if, when read together with the other parts of the Base Prospectus, it does not provide all the key information required. A.2 Consent to the use of the prospectus Offer period for resale by financial intermediaries Conditions to which consent is linked Statement that information about the terms and conditions of the offer made by a financial intermediary must be made available by the latter The Issuer and the Offeror consent to the use of the Base Prospectus for a public offer of the Securities in Sweden ("Public Offer") (general consent). The Issuer reserves the right to withdraw its consent to the use of the Base Prospectus with respect to certain distributors and/or all financial intermediaries. The subsequent resale and final placing of the Securities by financial intermediaries may take place during the Offer Period. "Offer Period" means the period beginning on 7 December 2018 and ending with the term of the Securities (see C.15) or in case that a base prospectus which follows the Base Prospectus has not been published on the website certificates.vontobel.com under the section 'Legal Documents' until the last date of the validity of the Base Prospectus with expiration of the validity of the Base Prospectus pursuant to section 9 of the German Securities Prospectus Act (Wertpapierprospektgesetz, "WpPG") This consent by the Issuer and the Offeror is subject to the conditions (i) that the Base Prospectus and the Final Terms are provided to potential investors only together with all supplements published up to the time of such provision and (ii) that, in making use of the Base Prospectus and the Final Terms, the financial intermediary ensures that it complies with the applicable selling restrictions as well as all applicable rules and regulations in the respective jurisdiction. If the offer for the purchase of the Securities is made by a financial intermediary, the information about the terms and conditions of the offer must be made available by the respective financial intermediary at the time the offer is made.

9 2/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel Section B - Issuer and Guarantor B.1 Legal and commercial name B.2 Domicile, legal form, applicable legislation and country of incorporation The legal and commercial name of the Issuer is Vontobel Financial Products GmbH. The domicile of the Issuer is Frankfurt am Main, Germany. Its business address is: Bockenheimer Landstraße 24, Frankfurt am Main, Germany. The Issuer is a limited liability company (Gesellschaft mit beschränkter Haftung) incorporated under German law in Germany and is registered with the commercial register of the local court (Amtsgericht) at Frankfurt am Main under the register number HRB B.4b Known trends The Issuer s business is in particular affected by the economic development, especially in Germany and Europe, as well as by the overall conditions in the financial markets. In addition, the political environment also affects the Issuer s business. Furthermore, possible regulatory changes may have a negative impact on the demand or the cost side for the Issuer. B.5 Group structure and position of the Issuer within the group B.9 Profit forecasts or estimates B.10 Qualifications in the audit report on the historical financial information B.12 Selected key historical financial information The Issuer has no subsidiaries. All of the shares in the Issuer are held by Vontobel Holding AG, the parent company of the Vontobel group (the "Vontobel Group"). Established in 1924 and headquartered in Zurich, the Vontobel Group is a Swiss private banking group with international activities. The Vontobel Group provides global financial services on the basis of the Swiss private banking tradition. The business units on which the Vontobel Group is focused are (i) Private Banking, (ii) Asset Management and (iii) Investment Banking. not applicable A profit forecast or estimate has not been included. not applicable There are no such qualifications. The following selected financial information has been taken from the Issuer's audited financial statements for the financial years 2016 and 2017 which were prepared in accordance with the provisions of the German Commercial Code (Handelsgesetzbuch) and the German Law on Limited Liability Companies (Gesetz betreffend die Gesellschaften mit beschränkter Haftung). Balance sheet Receivables from affiliated companies (current assets) 31 DECEMBER 2016 (EUR) 31 DECEMBER 2017 (EUR) 1,351,901,297 1,775,739,225 Bank balances (current assets) 2,634,324 2,794,745 Issuance liabilities (liabilities) 1,351,709,919 1,775,673,062 Capital reserves (equity) 2,000,000 2,000,000 Total assets 1,368,192,787 1,792,365,993 Income statement Realised and unrealised gains and losses from the issuance business Realised and unrealised gains and losses from hedging transactions 1 JANUARY TO 31 DECEMBER 2016 (EUR) 1 JANUARY TO 31 DECEMBER 2017 (EUR) 66,703, ,920,453-62,150, ,348,590 Other operating expenses 3,451,117 4,412,343 Net income for the year 331, ,332

10 3/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel Statement about the Issuer's prospects Statement about changes in the Issuer's position B.13 Recent events particular to the Issuer which are to a material extent relevant to the evaluation of the Issuer's solvency There have been no material adverse changes in the prospects of the Issuer since the reporting date for the most recent audited annual financial statements (31 December 2017). not applicable No significant changes have occurred in the financial or trading position of the Issuer since the reporting date for the audited financial statements (31 December 2017). not applicable There have been no recent events particular to the Issuer which are to a material extent relevant to the evaluation of the Issuer's solvency. B.14 Group structure and position of the Issuer within the group/ Dependence of the Issuer on other entities within the group With respect to the organizational structure, see B.5 above. not applicable The Issuer has no subsidiaries. Since all of the shares in the Issuer are held by Vontobel Holding AG, the parent company of the Von-tobel Group, the Issuer is, however, dependent on Vontobel Holding AG. B.15 Description of the Issuer's principal activities B.16 Interests in and control of the Issuer B.18 Description of the nature and scope of the guarantee The Issuer's principal activity is to issue securities and derivative securities and to carry out financial transactions and auxiliary transactions of financial transactions. Activities that require authorisation under the German Banking Act (Gesetz über das Kreditwesen) are excluded. The Issuer may furthermore conduct all business activities that are directly or indirectly related to its main purpose and also carry out all activities that could directly or indirectly serve to promote the main purpose of the Issuer. The Issuer may also set up, acquire, or dispose of subsidiaries or branches in Germany and other countries, or acquire interests in other companies. All of the shares in the Issuer are held by Vontobel Holding AG, the parent company of the Vontobel Group. There is no control agreement and no profit and loss transfer agreement between the Issuer and Vontobel Holding AG. The major shareholders of Vontobel Holding AG (Vontobel Foundation, Vontrust AG, Advontes AG, Pellegrinus Holding AG, and an extended pool) are parties to a pooling agreement. As of 31 December 2017, 50.7% of all shares of Vontobel Holding AG issued are bound by the pooling agreement. The due payment by the Issuer of all amounts payable in accordance with the terms and conditions (the "Terms and Conditions") of the Securities issued under the Base Prospectus is guaranteed by the Guarantor (the "Guarantee"). The Guarantee represents an independent, unsecured and unsubordinated obligation of the Guarantor. Upon first demand by the respective security holders (the "Security Holders") and their written confirmation that an amount under the Securities has not been paid when due by the Issuer, Vontobel Holding AG as the Guarantor will pay to them immediately all amounts required to fulfil the intent and purpose of the Guarantee. The intent and purpose of the Guarantee is to ensure that, under all factual or legal circumstances and irrespective of motivations, defences, or objections on the grounds of which payments may fail to be made by the Issuer, and irrespective of the effectiveness and enforceability of the obligations of the Issuer under the Securities, the Security Holders receive the amounts payable on the redemption date and in the manner specified in the Terms and Conditions. The Guarantee represents an independent guarantee under Swiss law. All rights and obligations arising from the Guarantee are subject in all respects to Swiss law. The courts of law of the Canton of Zurich have exclusive jurisdiction over all actions and legal disputes relating to the Guarantee. The place of jurisdiction is Zurich 1. with B.1 Legal and com-mercial name of the Guarantor The Swiss Guarantor's legal and commercial name is Vontobel Holding AG.

11 4/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel with B.2 with B.4b with B.5 with B.9 with B.10 with B.12 Domicile, legal form, applicable legislation and country of incorporation of the Guarantor Known trends Group structure and position of the Guarantor within the group Profit forecasts or estimates of the Guarantor Qualifications in the audit report on historical financial information of the Guarantor Selected key his-torical financial information of the Guarantor The Swiss Guarantor is domiciled in Zurich. Its business address is: Gotthardstrasse 43, 8002 Zurich, Switzerland. The Swiss Guarantor is a stock corporation (Aktiengesellschaft) under Swiss law listed on the SIX Swiss Exchange AG and was incorporated in Switzerland. The Swiss Guarantor is entered in the commercial register of the Canton of Zurich under register number CH The prospects of Vontobel Holding AG are influenced in context of the continuing business operations of the companies of Vontobel-Group, by changes in the environment (markets, regulations), as well as by market, liquidity, credit and operational risks usually assumed with the launch of new activities (new products and services, new markets) and by reputational risks. In addition to the various market factors such as interest rates, credit spreads, exchange rates, prices of shares, prices of commodities and corresponding volatilities, the current monetary and interest rate policies of central banks are particularly to be mentioned as key influence factors. The Swiss Guarantor is the parent company of the Vontobel Group which consists of banks, capital markets companies and other Swiss and foreign companies. The Swiss Guarantor holds all of the shares in the Issuer. not applicable A profit forecast or estimate has not been included. not applicable There are no such qualifications. The following selected financial information has been taken from the Swiss Guarantor's audited consolidated annual financial statements for the financial years 2016 and 2017 which have been prepared in accordance with International Financial Reporting Standards (IFRS). Income statement 31 DECEMBER 2016 (CHF MILLION) 31 DECEMBER 2017 (CHF MILLION) Total operating income 1, ,060.3 thereof... net interest income fee and commission income trading income other income Operating expense thereof... personnel expense general expense depreciation, amortization valuation adjustments, provisions and losses Group net profit Balance sheet 31 DECEMBER 2016 (CHF MILLION) 31 DECEMBER 2017 (CHF MILLION) Total assets 19, ,903.7 Shareholders' equity (excluding minority interests) 1, ,620.5

12 5/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel Due to customers 9, ,758.2 BIS capital ratios 1) 31 DECEMBER DECEMBER 2017 CET 1 capital ratio (%) % 2)2) Tier 1 capital ratio % 3)3) Total capital ratio (%) % Risk ratio 4) 31 DECEMBER DECEMBER 2017 Average Value at Risk (market risk) (CHF million) ) The Bank for International Settlements (BIS) is the oldest international organisation in the area of finance. It manages parts of the international foreign exchange reserves and is thus de facto regarded as the bank of the world's central banks. The BIS is based in Basel (Switzerland). It publishes capital adequacy requirements and related equity ratios. 2) At present, the Vontobel Group's equity consists exclusively of Common Equity Tier 1 capital. 3) Tier 1 capital is also referred to as core capital. It is a component of a bank's capital and consists primarily of paid-in capital (share capital) and retained earnings (revenue reserves, liability reserve, fund for general banking risks). 4) Average Value at Risk 12 months for positions in the Financial Products division of the Investment Banking business unit. Historical simulation Value at Risk; 99% con-fidence level; 1-day holding period; 4-year historical observation period. The following selected financial information has been taken from the unaudited consolidated interim financial information as of 30 June 2018 which has been prepared in accordance with International Financial Reporting Standards (IFRS). Income statement 6 MONTH ENDING 30 JUNE 2017 (CHF MILLION) 6 MONTH ENDING 30 JUNE 2018 (CHF MILLION) Total operating income thereof... net interest income fee and commission income trading income other income Operating expense thereof... personnel expense general expense depreciation, amortization valuation adjustments, provisions and losses Group net profit Balance sheet 30 JUNE 2017 (CHF MILLION) 30 JUNE 2018 (CHF MILLION) Total assets 21, ,981.9 Shareholders' equity (excluding minority interests) 1, ,678.8

13 6/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel Due to customers 9, ,789.3 BIS capital ratios 1) 30 JUNE JUNE 2018 CET 1 capital ratio (%) 2) Tier 1 capital ratio (%) 3) Risk ratio 4) 30 JUNE JUNE 2018 Average Value at Risk (market risk) (CHF million) ) The Bank for International Settlements (BIS) is the oldest international organisation in the area of finance. It manages parts of the international foreign exchange reserves and is thus de facto regarded as the bank of the world's central banks. The BIS is based in Basel (Switzerland). It publishes capital adequacy requirements and related equity ratios. 2) At present, the Vontobel Group's equity consists exclusively of Common Equity Tier 1 capital. 3) Tier 1 capital is also referred to as core capital. It is a component of a bank's capital and consists primarily of paid-in capital (share capital) and retained earnings (revenue reserves, liability reserve, fund for general banking risks). 4) Average Value at Risk (6 months) for positions in the Financial Products division of the Investment Banking business unit. Historical simulation of Value at Risk; 99% confidence level; 1-day holding period; 4-year historical observation period. with B.13 with B.14 with B.15 with B.16 Statement about the Guarantor's prospects Statement about changes in the Guarantor's position Recent events particular to the Guarantor which are to a material extent relevant to the evaluation of the Guarantor's solvency Group structure and position of the Guarantor within the group/ dependence of the Guarantor on other entities within the group Description of the principal activities of the Guarantor Interests in and control of the Guarantor There have been no material adverse changes in the prospects of the Swiss Guarantor since the reporting date for the most recent audited annual financial statements (31 December 2017). not applicable No significant changes have occurred in the financial or trading position of the Swiss Guarantor since the reporting date for the unaudited interim financial statements (30 June 2018). not applicable There have been no recent events particular to the Swiss Guarantor which are to a material extent relevant to the evaluation of the Swiss Guarantor's solvency. The Swiss Guarantor is the parent company of the Vontobel Group. With respect to other aspects of the organisational structure, see with B.5 above. The business activities of the Swiss Guarantor are therefore affected in particular by the situation and activities of the operating (consolidated) Vontobel companies. Pursuant to Article 2 of the Articles of Association, the object of Vontobel Holding AG is to invest in companies of all types in Switzerland and abroad. The Swiss Guarantor may acquire, encumber and sell property in Switzerland and abroad. It may also transact any business that may serve to realise its business objective. The Vontobel Group is a Swiss private banking group with international activities headquartered in Zurich. It specialises in asset management for private and institutional clients and partners and carries out its activities in three business units, Private Banking, Investment Banking and Asset Management. The major shareholders of Vontobel Holding AG (Vontobel Foundation, Vontrust AG, Advontes AG, Pellegrinus Holding AG, and an extended pool) are parties to a pooling agreement. As of 31 December 2017, 50.7% of all shares of Vontobel Holding AG issued are bound by the pooling agreement.

14 7/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel Section C Securities C.1 Type and class of the securities, securities identification numbers The Securities are tradable. Form of the Securities The Securities will be in dematerialised form and will only be evidenced by book entries in the system of the Central Securities Depository (as defined below) for registration of securities and settlement of securities transactions in accordance with Chapter 4 of the Swedish Financial Instruments Accounts Act (lag (1998:1479) om värdepapperscentraler och kontoföring av finansiella instrument) (the "SFIA Act") to the effect that there will be no certificated securities. Central Securities Depository Euroclear Sweden AB, Klarabergsviadukten 63, Box 191, SE Stockholm, Sweden Securities identification numbers ISIN: DE000VA9F7G8 WKN: VA9F7G Valor: NGM Symbol: BULL OLJA X10 VON10 C.2 Currency of the issue The currency of the Securities is SEK (the "Settlement Currency"). C.5 Description of any restrictions on the transferability of the securities C.8 Description of the rights attached to the securities including ranking and limitations to those rights not applicable Each Security is freely transferable in accordance with applicable law and any rules and procedures for the time being of any clearing system through whose books such Security is transferred. Redemption on exercise or termination The Securities grant the Security Holder the right to require the Issuer to redeem the Securities on exercise or termination by the payment of a Cash Amount, as described in C.15. Governing law The form and content of the Securities as well as all rights and obligations of the Issuer and of the Security Holders are determined in accordance with German law, except that the registration of Swedish Registered Securities is governed by Swedish law. The form and content of the Swiss Guarantee and all rights and obligations arising from it are determined in accordance with Swiss law. Ranking of the Securities The obligations arising from the Securities constitute direct and unsecured obligations of the Issuer that rank pari passu in relation to one another and in relation to all other unsecured and unsubordinated obligations of the Issuer, with the exception of obligations that have priority due to mandatory statutory requirements. Limitations to the rights In accordance with the Terms and Conditions, the Issuer may make adjustments upon the occurrence of defined events in order to reflect relevant changes or events relating to the respective Underlying (as defined in Element C.20 below), or may terminate the Securities extraordinarily. In the case of an extraordinary termination, all investors rights as described above cease to exist and there is the risk that the extraordinary termination amount may be zero (0). In the event that a market disruption occurs, there may be a delay in valuing the Security in relation to the Underlying, and this may affect the value of the Securities and/or delay the payment of the Cash Amount. In such cases, the Issuer may, in its reasonable discretion, determine a rate, level or price for the Underlying that is relevant for the purposes of valuing the Securities. The Issuer has the right to terminate all of the Securities ordinarily by the payment of the ordinary termination amount (which is calculated in the same way as the Cash Amount) and to end the term of the Securities.

15 8/14 Investment Banking / issue specific summary dated 7 December 2018 / DE000VA9F7G8 Vontobel C.11 Admission to trading on a regulated market or other equivalent markets not applicable An admission of the Securities to trading on a regulated market or other equivalent markets is not intended. Application will be made for the Securities to be only included in the regulated unofficial market of the following exchanges: Exchange: Nordic Growth Market Market segment: Nordic MTF Sweden The date on which the Securities are expected to be included in trading is 12 December C.15 Description of how the value of the investment is affected by the value of the underlying instrument On the basis of the Securities, investors can participate in the performance of a particular underlying without having to purchase the respective underlying (the "Factor Index") or the financial instrument to which it is linked (the "Reference Instrument") directly. Each Constant Leverage Certificate has a specifically created Factor Index as its underlying. The Factor Index implements the leverage (the factor), i.e. it disproportionately reflects the performance of the Reference Instrument on a daily basis by multiplying the change in its value by a constant factor. The Reference Instrument is a future or interest rate future, for more detailed information see C.20. Because of various features of the Securities, an investment in the Securities is not comparable to a direct investment in the underlying or the Reference Instrument. The principal characteristic of Constant Leverage Certificates is that, after allowing for the ratio, they reproduce the performance of the underlying, i.e. the Factor Index, on a one-to-one basis. The Factor Index is composed, calculated and published by Bank Vontobel AG, Zurich, a company affiliated to the Issuer. It consists of a leverage component and a financing component. The leverage component tracks an investment in the Reference Instrument, whereby movements in the price of the Reference Instrument are multiplied by the leverage (the "Factor"). The Factor is specified at the start of a new Factor Index and always remains unchanged for the entire calculation period of the Factor Index. Factor Indices therefore replicate a theoretical investment in a Reference Instrument, but movements in the price of the Reference Instrument are multiplied by the Factor. This leverage effect has a disproportionate effect on the value of the Factor Index in the case of both positive and negative movements in the Reference Instrument. An investment in futures does not involve the purchase of the reference asset underlying the future but simply consists of entering into a corresponding position in a futures contract Instead, a payment must be made as a collateral for the position entered into (margin payment).the financing costs for such margin payment are reflected in the financing component. The financing component also reflects the income that would be earned from a risk-free investment in line with the strategy of the leverage component and at the relevant rate of interest. Additionally, a ee is charged by the index calculation agent for the calculation and administration of the Factor Index (index fee). If the costs of the margin payment and the index fee exceed the interest income based on the relevant rate of interest on a particular day, the financing component reduces the value of the Factor Index. The Cash Amount for the Constant Leverage Certificates is dependent on the performance of the Underlying and corresponds to the Reference Price (as defined in C.19) under consideration of the Ratio. Underlying: 10X Long Index linked to Brent Crude Oil Future V5 (for further details, see C.20) Ratio: 0.25 See also the issue-specific information under C.16. C.16 Expiration or maturity date Constant Leverage Certificates do not have a fixed term and therefore do not grant the Security Holder the right to demand payment of the Cash Amount on a particular date, specified in advance at the time of issue, based on a particular price of the Underlying. The calculation and (subsequent) payment of the Cash Amount takes place when the Security Holder exercises the Securities effectively or when the Issuer ordinarily terminates the Securities.